Last week was not good for the single currency and it remains well down against every major competitor except the Japanese yen.
Tensions between the West and Russia, and a lack of progress with Moscow-Kiev negotiations, have sent the euro lower. Following talks between the two countries, Moscow negotiator Vladimir Medinsky said, “on secondary issues, positions are converging. However on the main political issues, we are in fact treading water.”
It’s a busy week in the eurozone calendar. We will see several European Central Bank officials speak, including President Christine Lagarde on Wednesday, along with German consumer confidence figures tomorrow, German inflation rate figures on Wednesday and the eurozone inflation rate figures on Friday. In the eurozone, inflation is expected to rise from 5.9% to 6.4%; any surprises could impact the euro.
